The Air Force procures commercial general purpose vehicles based on lowest acquisition costs, under the assumption that Operations and Maintenance (O&M) costs are the same for similar vehicle types. The assumption is made because of lack of conclusive proof that O&M costs are significantly different. This paper addresses whether the Air Force should continue the present procurement strategy, or procure vehicles based on total Life Cycle Cost (LCC) acquisition techniques. Statistical analysis indicates that LCCs of two makes of one type of commercial vehicle (pickup trucks) are not equal, based on a sample of 70 vehicles selected from six bases. The results suggest that LCC procurement strategies should be further investigated, especially for multiyear and other large scale buy programs.
A Life Cycle Cost Analysis for the Procurement of General Purpose Vehicles
1982
64 pages
Report
No indication
English
Logistics Military Facilities & Supplies , Management Practice , Road Transportation , Air Force procurement , Vehicles , Cost analysis , Life cycle costs , Commercial equipment , Acquisition , Low costs , Operation , Maintenance , Cost effectiveness , Strategy , Logistics planning , Policies , Trucks , Statistical analysis , Cost models , Data acquisition
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